AOW, pension and tax in Andorra: the Netherlands keeps taxing, and without a social security agreement less AOW for whoever goes alone

If you live in Andorra, the Netherlands continues to tax your AOW, your company pension and your annuity. That is arranged by the tax treaty the Netherlands and Andorra concluded in Marrakesh on 12 October 2023, which has applied since 1 January 2025. Andorra also taxes your pension as a resident, at 10 percent with €24,000 tax-free, but credits the Dutch tax. There is no social security agreement. Because of that a single person gets the AOW for married people.

Three things to know in advance:

• Without a social security agreement a single person gets the AOW for married people: about 30 percent less. For a couple nothing changes.
• You no longer get a tax credit. So the Netherlands taxes your AOW and pension without a credit.
• The Anw, the Supplementary Benefits Act and the AIO supplement do not travel with you. Child benefit and unemployment benefit stop.

Income	Netherlands	Andorra
AOW, Anw and other benefits	taxed (article 17(2))	taxed, with a credit for the Dutch tax
Company pension, annuity	taxed if the build-up was tax-facilitated (article 17(2)), no threshold	taxed, with a credit
ABP pension from government service	taxed (article 18(3))	exempt, unless you are an Andorran national
Buying out a pension or annuity	taxed (article 17(3))
Dividend from a Dutch bv	at most 15% (article 10(2))	taxed, with a credit
Gain on the sale of a substantial interest	taxed for the Dutch period (article 13(6))
Interest	exempt (article 11(1))	taxed
Wages for work in Andorra	exempt	IRPF 10%

How much AOW do you get?

Your accrued AOW goes with you to Andorra. But the Netherlands has no social security agreement with Andorra; it does not appear in any list of treaty countries. Then article 9a of the AOW applies: whoever lives outside the Netherlands gets the amount for married people. A single person gets net 50 instead of 70 percent of the net minimum wage: about 30 percent less. A couple keeps its amount. The SVB says so itself: "In some countries we pay a lower AOW."

Andorra uses the euro, so the SVB transfers your AOW without conversion. Sometimes the SVB asks for a proof of life. If you arrange your DigiD before you leave, you report changes yourself.

Which country taxes what?

The treaty lets the country the pension comes from tax it. Article 17(2) says that pensions, annuities and social security benefits from the Netherlands may be taxed in the Netherlands, in so far as the build-up was tax-facilitated in the Netherlands. There is no threshold amount. So that applies to your AOW, your company pension and your annuity. The Netherlands also taxes an ABP pension (article 18(3)).

As your country of residence, Andorra taxes your worldwide income, and so your Dutch pension too. You do not pay twice: Andorra deducts the Dutch tax, up to at most the Andorran tax on that income (article 22(7)). Because the Andorran rate is low, there is often nothing left to pay in Andorra; have an Andorran adviser recalculate that for your amounts. You do not apply for an exemption from wage tax: the withholding by the SVB and your pension fund is correct. See where your pension is taxed.

The Belastingdienst table of January 2026 still puts the heading "not yet in force" above Andorra. The same table names the entry into force on 31 December 2024, and the Tractatenblad confirms it. Go by this: the treaty has applied since 1 January 2025.

How does Andorra tax your income?

You are a resident for the IRPF, the Andorran income tax, if you are there more than 183 days a year. The rate is 10 percent. The first €24,000 are tax-free, and between €24,000 and €40,000 you pay half. A pension of €30,000 a year therefore produces €300 of Andorran tax, before the credit. Foreign pensions count as income from work. Andorra has no wealth tax, no inheritance tax and no gift tax; they do not appear in the official list of tax laws. In the shops you pay the IGI, the Andorran VAT, of 4.5 percent.